A Research on the IPO Under-Pricing of Minor Enterprises Board
|School||East China Normal University|
|Keywords||Initial Public Offering IPO Underpricing SME board Multiple linear regression Capital turnover rate of subscription of new shares Daily limit system|
IPO underpricing or IPO on the first day of excess yield is the common problem of national markets , many scholars have conducted extensive theoretical study . The research found that China 's IPO underpricing problem is very serious . On the Shanghai and Shenzhen cities overall , small plates from the Shanghai and Shenzhen Stock Exchange in 1990, has been established , China 's IPO on the first day , the average excess return rate of 415.80% , not only higher than the U.S. market , is also higher than in other emerging markets ; words, during the period from June 2004 to February 2008 , the average underpricing of China 's SME board IPO of up to 145.82 percent , far more than the same period the level of underpricing of the new shares on the Main board . The correlation analysis and Granger test , the first day of opening of new shares or an important factor as we find the first effect of the level of China 's IPO underpricing . According to the theory at home and abroad , the paper selects the empirical analysis of 44 variables , the final regression results show that turnover , the success rate , the current ratio , the amount of first raise funds 11 variables are also factors affect the level of China 's IPO underpricing . Through empirical results can be found in China 's IPO market information asymmetry , the first day of IPO speculation and the issue of institutional factors is the cause of China 's IPO underpricing . Among them, there are more severe than the motherboard asymmetric information and speculative issues due to China 's SME board , so China 's SME board IPO underpricing level is higher than that motherboard. High IPO Underpricing SME board can play to attract funds in the market to make up for the role of asymmetric information problems , but due to the failure of excessive speculation in the market mechanism , the speculative increase and the issue price continue to improve all the attention should be paid to the Shenzhen Stock Exchange . Shenzhen Stock Exchange to take the intraday temporary stop disk policy to suppress the SME board IPO on the first day of excessive speculation , but the effect of this policy is not ideal . This paper argues that the Shenzhen Stock Exchange should be based on the perfect temporary stop plate policy , regulation the IPO listing the time arrangements to reduce the capital turnover rate of the subscription of new shares , while taking the IPO first day of trading board system , in order to effectively solve the small plates IPO underpricing level excessive adverse consequences .